Inventory Management Plan (IMP)

1. Inventory Management Plan (IMP) May Ajero/ Alvin Mejia CAI-Asia Center Maynilad Water Services Inc Greenhouse Gas (GHG)/Air Pollution(AP) Accounting Seminar 2-3 February 2010

2. What is an IMP? Describes the process for completing a high-quality, corporate-wide inventory An internal document to the company (you may or may not publish) Tool to guide staff in complex inventory process A collection of procedures and other relevant information

3. Why have an IMP? http://www.scribd.com/doc/1606037/Environmental-Protection-Agency-grice-imp Improve Accuracy Streamline Verification Increase Efficiency Achieve your goals

4. Inventory Management Plan Main Components Company Information Boundary Conditions Emissions Quantification Data Management Base Year Management Tools Auditing and Verification

5. Company information Company Name Corporate Address Inventory Contact Inventory Contact Information Company Objectives

6. Inventory Management Plan Main Components Company Information Boundary Conditions Emissions Quantification Data Management Base Year Management Tools Auditing and Verification

7. Boundary Conditions (1) • Equity share approach? Financial or Operational Control approach? • Inclusion of Partially Owned or Controlled Assets

8. Boundary Conditions (2) Facilities List GHG List Emission Source Identification Procedure (e.g. link with IMP, EMS) Direct Sources (Scope 1) Indirect Sources (Scope 2) Other Indirect Sources (Scope 3)

9. Facilities List

10. Emissions Scoping

11. Definitions Finance or capital lease. This type of lease enables the lessee to operate an asset and also gives the lessee all the risks and rewards of owning the asset. Assets leased under a capital or finance lease are considered wholly owned assets in financial accounting and are recorded as such on the balance sheet Operating lease. This type of lease enables the lessee to operate an asset, like a building or vehicle, but does not give the lessee any of the risks or rewards of owning the asset. Any lease that is not a finance or capital lease is an operating lease

12. Finance Lease Scope 1 Scope 2 Scope 3 Scope 1 Scope 2 Scope 3 Fuel Combustion Fuel Combustion Lessor Lessee

13. Operating Lease Scope 1 Scope 2 Scope 3 Scope 1 Scope 2 Scope 3 Fuel Combustion Fuel Combustion Lessor Lessee Under the Equity Share or Financial Control Approach

14. Operating Lease Scope 1 Scope 2 Scope 3 Scope 1 Scope 2 Scope 3 Fuel Combustion Fuel Combustion Lessor Lessee Under the Operational Control Approach

15. Inventory Management Plan Main Components Company Information Boundary Conditions Emissions Quantification Data Management Base Year Management Tools Auditing and Verification

16. Emissions Quantification • Quantification Method • Documentation of the methodologies and references • Emission Factors and Other Constants • List of emission factors/constants and their references • How are these external references kept current?

17. Inventory Management Plan Main Components Company Information Boundary Conditions Emissions Quantification Data Management Base Year Management Tools Auditing and Verification

18. Data Management Link with existing data management systems!! • Activity Data • Where does the activity data come from? • Data Management • Process for data collection and processing • Data Collection Process – Quality Assurance • Major sources of uncertainty and measures to address the risks • Data Collection System Security • Integrated Tools • Frequency

19. Data Flow

20. Inventory Management Plan Main Components Company Information Boundary Conditions Emissions Quantification Data Management Base Year Management Tools Auditing and Verification

21. Base Year Take account of major operations, facility and equipment changes? Adjustment – Structural Changes Adjustment – Methodology Changes In order to maintain the consistency between data sets, base year emissions need to be recalculated due to structural changes and methodological changes (and discovery of significant errors in the calculations)

22. Base Year Recalculations

23. Inventory Management Plan Main Components Company Information Boundary Conditions Emissions Quantification Data Management Base Year Management Tools Auditing and Verification

24. Management Tools Roles and Responsibilities Training Document Retention and Control Policy

25. IMP revisions IMP revision history

26. Inventory Management Plan Main Components Company Information Boundary Conditions Emissions Quantification Data Management Base Year Management Tools Auditing and Verification

27. Auditing and Verification Internal Auditing External Validation and/or Verification[Optional] Management Review Corrective Action

28. Some References Climate Registry IMP www.theclimateregistry.org/.../Inventory%20Management%20Plan.doc Climate Leaders Simplified Inventory Management Plan - www.epa.gov/climateleaders/documents/simplified_imp_06-09-08.doc Entergy Corporation IMP http://www.americancarbonregistry.org/carbon-registry/inventory-docs/ETR-GreenhouseGasInventoryMgtPlan-Rev_082509.pdf Frito Lay IMP http://search.cdproject.net/responses2/attachedfiles/Responses/53646/8214/FritoLay%20Climate%20Leaders%20IMP.pdf

29. CAI-Asia Center www.cleanairnet.org/caiasia May Ajero/Alvin Mejia Unit 3510, 35th Floor, Robinsons-Equitable Tower, ADB Avenue, Pasig City, Metro Manila, 1605 Philippines